Global systemically important banks - revised assessment framework

The Basel Committee on Banking Supervision has issued a public consultation on potential measures to address "window-dressing" behaviour by some banks in the context of the framework for global systemically important banks (G-SIB). Such regulatory arbitrage behaviour seeks to temporarily reduce banks' perceived systemic footprint around the reference dates used for the reporting and public disclosure of the G-SIB scores.

Window-dressing by banks is unacceptable. Such behaviour undermines the intended policy objectives of the Committee's standards and risks disrupting the operations of financial markets. The proposed revisions aim at mitigating the ability of banks to window-dress by requiring banks participating in the G-SIB assessment exercise to report and disclose the stock G-SIB indicators based on an average of values over the reporting year, rather than based on year-end values.